No personal income tax on worldwide income
Not applicable to French nationals, who remain taxable in France
No inheritance or gift tax between close relatives
Limited double tax treaty network compared with larger EU states
No personal tax advantages
Corporate income tax of up to 25% if more than 25% of turnover is generated outside Monaco
Increased banking and compliance requirements due to FATF monitoring and the EU AML high-risk classification
Monaco is a sovereign principality on the French Riviera, bordering France and the Mediterranean Sea. It is not a member of the European Union, but it uses the euro and is closely integrated into the French system for VAT and customs purposes. With a population of around 38,000, Monaco is known for political stability, security, and a strong private-banking environment.
Monaco offers one of the most attractive personal tax systems in Europe. Individuals resident in Monaco are generally not subject to income tax on worldwide income. However, this does not apply to French nationals, who remain subject to French income tax under the agreement between France and Monaco.
For companies, Monaco can be attractive, but it is not automatically tax-free.
Corporate income tax applies if more than 25% of turnover is generated outside Monaco. In that case, the standard corporate tax rate is 25%. If at least 75% of turnover is generated within Monaco, the company may, subject to certain legal and operational conditions, fall outside the corporate tax regime.
This means corporate tax can be avoided in certain structures, but only if the business model genuinely qualifies and real economic substance exists in Monaco.
Withholding tax on dividends distributed by a Monegasque company is generally 0%. In addition, there is no capital gains tax and no wealth tax at Monaco level. However, taxation may arise in the shareholder’s country of residence.
It is important to note that Monaco is currently under increased monitoring by the Financial Action Task Force (FATF) and is classified by the European Union as a high-risk third country in the area of AML/CFT. This does not prevent company formation or opening a bank account, but it does lead to enhanced due diligence, stricter compliance checks, and sometimes longer onboarding processes at EU banks and financial institutions.
Contact us for an individual assessment and possible alternative solutions.
Usually several weeks to a few months, depending on regulatory approval, the completeness of the documentation, and bank onboarding. Opening the bank account is often the most time-consuming step.
Parts of the process can be handled remotely, in particular document preparation and formal registration steps. However, opening a bank account as well as residency and substance requirements often require at least some personal presence or strong local representation. In practice, you should plan for at least one in-person appointment.
Parts of the process can be handled remotely, in particular document preparation and formal registration steps. However, opening a bank account as well as residency and substance requirements often require at least some personal presence or strong local representation. In practice, you should plan for at least one in-person appointment.
Not mandatory in every case. In practice, however, local presence and authorised signatories may be relevant for approvals and banking processes. Substance is therefore an important factor.
Generally yes, provided the business activity is clearly defined and the documentation is complete. For foreign shareholders, additional compliance checks should be expected. Monaco has digital procedures for VAT-related registrations.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| USA | 21-0% |
|
|
|
|
from EUR 1,900 |
| Singapore | 0% |
|
|
|
|
from EUR 2,950 |
| Hong Kong | 0% |
|
|
|
|
from EUR 1,900 |
| Cyprus | 15% |
|
|
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from EUR 1,900 |
| Malta | 5% |
|
|
|
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from EUR 2,500 |
| Ireland | 12,5% |
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from EUR 1,950 |
| Trust | 0% |
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|
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income— in some cases even when profits are not distributed.
Depending on your personal situation, a suitable holding structure may be required to comply with tax regulations and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be happy to review your case and advise you accordingly.
